Chapter Questions
• How can products be classified?
• How can companies differentiate products?
• How can a company build and manage its
product mix and product lines?
• How can companies use packaging,
labeling, warranties, and guarantees as
marketing tools?
12-1
Products
12-2
Durability and Tangibility
Durable
goods
Non-durable
goods
Services
12-3
12-4
Product Differentiation
• Product form
• Style
• Features
• Design
• Performance
• Ordering ease
• Conformance
• Delivery
• Durability
• Installation
• Reliability
• Customer training
• Reparability
• Customer consulting
• Maintenance
12-5
Design Differentiation
12-6
Design Differentiation
12-7
Maintenance and Repair
12-8
Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
12-9
Line Filling
12-10
Proctor & Gamble
12-11
Packaging: The 5th P?
All the activities of designing and producing
the container for a product.
12-12
Packaging is influenced by…
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
12-13
Innovative Packaging
12-14
Innovative Packaging?
12-15
Innovative Packaging?
12-16
Functions of Labels
Identifies
Grades
Describes
Promotes
12-17
Identifies?
12-18
Identifies?
12-19
Grades?
12-20
Warranties and Guarantees
12-21
Example
2004 Hyundai Accent GT Hatchback
© Robert C. Bowden
Two things might tilt a frugal buyer toward
the 2004 Hyundai Accent GT and away from
similarly priced competitors: the longest
warranty on any subcompact car, and
standard side air bags. No competitor offers
these and both are invaluable to buyers….
Bottom line: If you only have $10,000 to
spend on a new car, the 2004 Hyundai
Accent deserves serious consideration. If
you can find better transportation value with
four wheels and a roof, buy it.
12-22
Marketing Discussion
 How could a competitor best
differentiate itself from Toyota?
12-23